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South Africa’s Cape Argus is reporting on more than 30 pyramid schemes plaguing Johannesburg.  The report adds to the list of countries reporting an epidemic of financial crime.  We have blogged on scams in the United Kingdom, Australia, and Japan, among others.  Scams are more frequently crossing the oceans; even domestic financial scams often involve characters operating overseas. 

Scam artists carry with them a briefcase full of excuses and bogus explanations that they draw from in furtherance of their schemes.  Operating in a different country only adds to the trove of tricks.  I am serving as a court-appointed Receiver in a case filed by the U.S. Securities and Exchange Commission in which one of the scam artists told American investors that European hedge funds do not typically send investors account statements.  That is untrue, of course, but Americans’ unfamiliarity with the norms in other countries makes it hard to refute. 

If you are considering an investment with an international component, speak to someone who has investigated multi-national investment scams.  As hard as it is to retrieve your money from a domestic scam artist, retrieving it from overseas is that much more difficult.